Expedia Hold Rating: Innovative Steps Forward Yet Priced-In Prospects

JMP Securities analyst Nicholas Jones CFA has maintained their neutral stance on EXPE stock, giving a Hold rating yesterday.

Nicholas Jones CFA has given his Hold rating due to a combination of factors surrounding Expedia’s current position and future prospects. While the company’s innovation and utilization of AI are promising, particularly with the introduction of its AI-driven travel assistant, Romie, and initiatives like Travel Shops to capitalize on influencer marketing, these advances are seen as evolutionary rather than revolutionary. The company’s enhanced marketing efforts and loyalty program growth are noteworthy, yet they do not necessarily alter the fundamental investment thesis. Jones acknowledges the positive direction in which Expedia is moving but stops short of predicting a significant market outperformance.
Moreover, Jones’ analysis suggests that the current valuation of Expedia’s shares is reasonable when looking at expected earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025. His view is that the discount in valuation compared to peers is justified by Expedia’s lower margin profile and its loss of market share within the U.S. market. While there are clear strategic initiatives underway that could enhance Expedia’s market position and financial performance, the Hold rating indicates a belief that these factors are already priced into the stock, and investors should not expect substantial gains in the near term.

In another report released yesterday, Bernstein also maintained a Hold rating on the stock with a $136.00 price target.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EXPE in relation to earlier this year.

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Expedia (EXPE) Company Description:

Expedia Group, Inc. is an online travel company, which engages in the provision of travel products and services to leisure and corporate travellers. It operates through the following business segments: Core Online Travel Agency(OTA), Trivago, Vrbo, and Egencia. The Core OTA segment offers full range of travel and advertising services to worldwide customers through a variety of brands including: Expedia.com and Hotels.com. The Trivago segment involves in sending referrals to online travel companies and travel service providers from its hotel metasearch websites. The Vrbo segment operates an online marketplace for the alternative accommodations industry. The Egencia segment manages travel services to corporate customers worldwide. The company was founded in 1994 and is headquartered in Seattle, WA.